Little Changed, Fed Purchase Tweaks & ACGB Syndication Headline

A pocket of TYM1 futures buying allowed an uptick from lows in early Asia dealing, before some light pressure for Aussie bonds resulted in some (very modest) pressure for Tsys. T-Notes last -0-00+ at 131-31+, holding to a narrow 0-04 range. Cash Tsys sit little changed to 1.5bp cheaper. A reminder that late NY trade saw some outperformance for 20s on the back of comments made by NY Fed's Logan, as she pointed to the likelihood of an uptick in 20-Year Tsy purchases from the Fed, as well as a downtick in TIPS purchases given the recent issuance trends. Flow was headlined by a 5.0K block buyer of the TYM1 132.00 calls.

• There was very little to report for JGBs, with the cash market lacking a clear sense of direction, the major benchmarks generally trade within 0.5bp of unchanged at typing. Futures +1. There was a steady trickle of pricing of JPY corporate supply today, with the pipeline also building.
• YM last printing at unchanged levels in Sydney, while XM has given back its overnight gains in the wake of the AOFM announcement re: the syndication of the new ACGB Nov '32, +0.5 at typing. As a reminder, some had suggested that the syndication may be delayed until FY21/22, given the government's better than expected fiscal standing, while others had suggested that April provided the best issuance window for the syndication in the remainder of the current FY. Elsewhere, the pricing witnessed at the latest round of ACGB Nov '25 supply was particularly firm, with the weighted average yield printing a little over 1.1bp through prevailing mids at the time of supply (supportive factors were outlined in our auction preview), although the cover ratio wasn't quite as aggressive as what was seen at the previous auction of the line (even when auction size is adjusted for). The RBA's Financial Stability Review & questions re: the local COVID vaccination drive had little, if any, impact on the space.